Things You should Know About Reverse Mortgage Loans

6/21/2007

posted by N. Sioris

Stumble It!

Reverse Mortgage Loans can be confusing. To help with some of the basics, here are a few things you should know about Reverse Mortgages, so that you can evaluate whether one is right for you and whether you qualify for a Reverse Mortgage Loan or not.

• All persons on title to the home must be at least 62 years old.
• There must be substantial equity in the home. (minimal mortgage balance or no mortgage)
• The bank does NOT own your home. You retain title to your property.
  
• You must continue to maintain your home, pay the property taxes and the insurance.
• Your heirs are NOT responsible if your loan balance exceeds the value of your home at the time the loan is repaid. The home stands ALONE for the reverse mortgage debt.
• When a couple takes out a Reverse Mortgage together and one person passes away or permanently moves to a nursing home or care facility, the other person continues to receive the monthly income or access to the credit line or proceeds of the Reverse Mortgage until that person either passes away or permanently moves out of the home.
• Before you can make an application for a Reverse Mortgage, all persons on title to the home must complete AARP-HUD approved counseling. The counseling is free and can be done either by telephone or in person. A certificate of completion is issued and must be presented to a Reverse Mortgage Lender at the time of application.